Kellogg’s Case study which got benefitted by using AWS!
This blog aims to elaborate on the challenges which Kellogg’s company was facing before using the AWS, & how they got benefitted by using AWS?
Amazon is the most popular cloud service provider in today’s world. AWS has the maximum market of cloud customers. There are multiple companies that are using AWS, & most of them are using AWS on a very large scale. A list of the top 10 users of AWS is mentioned below based on their monthly cost to AWS.
- Netflix: $19 million
- Twitch: $15 million
- LinkedIn: $13 million
- Facebook: $11 million
- Turner Broadcasting: $10 million
- BBC: $9 million
- Baidu: $9 million
- ESPN: $8 million
- Adobe: $8 million
- Twitter: $7 million
The aforementioned list is enough to show the market capture & popularity of the AWS.
This blog is written with the aim of sharing one case study of Kellogg’s company which got benefitted after using the services of the AWS. Before directly listing the challenges of the Kellogg’s company, some information about the same has been listed below in the brief introduction section of Kellogg’s below, which is followed by the challenges & solutions section.
Brief about Kellogg’s
The founders of the Kellogg’s company are W.K. Kellogg & his brother John Harvey Kellogg. It was founded in 1898 with a mistake of accidentally flaking wheat berry, this mistake changed the fortune of the Kellogg’s brothers.
This company has net sales of $14.8 billion in 2013. Kelloggs now operates in 180 different countries, having its headquarter at Battle Creek, Michigan. Kellogg’s supplies ready to eat meals, that includes Pop-Tarts, Corn flakes, Nutri-Grain Bars, etc.
One small mistake of the Kellogg’s brothers leads them to a multi-national billionaire company.
Challenges faced by Kellogg’s
The company was facing the biggest issue of revenue, as there were not a lot of margins in the product, & the one-third part of the generated revenue was spent on the promotional costs of the company like special discounts, sponsorships, etc.
It was said by “Stover McIlwain”, who is the Senior Director of IT Infrastructure Engineering at Kellogg, that “If we improve trade spend by just 1 percent, that’s $50 million dollars.”
A large amount of data was monitored by the company which involves very complex processing, & the local database which was used by the company was not able to cope up with the requirement. Multiple simulations has to be executed by the company everyday, but the database used was only able to run one simulation per day, which was a big challenge for the company.
Revenue growth of the company was saturated in some of the categories for the company, & even then the company has to spend a lot on the traditional infrastructure which was not up to the mark. These were the few challenges that need to be resolved.
Solutions to the challenges using AWS!
Kellogg’s opted for the fully SAP-certified HANA environment offered by AWS which leverages the power of in-memory computing which is super fast & also it has the support of the cloud which implies that there will be no limit of resource usage, they can be scaled according to the need.
Multiple AWS EC2 instances were used with the SAP service by the company which has the capability to process 16 TB of sales data every day, with the support of modelling dozens of simulations.
Kellogg’s used AWS S3 for the data backup, EBS with provisioned IOPS for faster data input/output rates, AWS IAM for log management, AWS VPC which are connected to the Kellogg’s local data-centre for gaining direct access to the SAP.
AWS CloudWatch was used for Monitoring the resources, & it provides cost structure of department wise even, which results in the cost model at a very high granular level, which helped the company a lot for management. McIlwain even said, “We were never able to do that with our on-premises infrastructure. AWS breaks down usage and cost to such a granular level that we can identify which costs come from which department, like a toll model.”
For the high availability of the servers, Kellogg’s used the power of AWS DataCentres/Availabiltiy Zones, which saves the cost of maintaining a separate data centre to the company.
After using AWS McIlwain said that “Using AWS saves us more than $900,000 and lets us run dozens of data simulations a day so we can reduce trade spend. It’s a win-win, and a pretty compelling business case for moving to the cloud,”.
This was the complete case-study for the Kellogg’s Company which benefitted them a lot by using the Cloud services of Amazon i.e. AWS.
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